clarinews@clarinet.com (Kelly/Standard Broadcast News) (02/01/90)
(OTTAWA) A senior official of the Federal Business Development Bank has been demoted over loans made to a number of strip clubs. After a review of bank policy following the discovery that thirty-eight strip clubs had been loaned some 17-Million dollars from the F-B-D-B, the chief operating officer for loans has been relieved of his money-lending duties. A Government official says former C-O-O Ken Neilson is now working in an advisory position for the bank. Besides the demotion, fourteen bank employees have had their salaries frozen for their roles in approving the loans to strip clubs. Those jobs are mainly in Ontario and British Columbia and the salary freeze varies three to eighteen months.